CTV & video · also called Subscription video on demand
SVOD
SVOD (subscription video on demand) is streaming video paid for by a recurring subscription, traditionally without ads, such as the ad-free tiers of Netflix or Disney+.
SVOD services charge viewers a monthly or annual fee for access to a library of shows and films. For years, the promise was "no ads": Netflix built its business on it.
That changed as growth slowed and competition rose. Many SVOD services now offer cheaper ad-supported tiers, turning part of their audience into AVOD-style inventory. This hybrid model combines subscription revenue with advertising and has created some of the most sought-after CTV inventory, because it offers premium content and logged-in audiences with rich first-party data.
For advertisers, ad tiers of SVOD services are often sold directly or through programmatic guaranteed and private marketplace deals rather than open auctions, at high CPMs. They may use their own ad tech or partners, and may offer measurement in clean rooms. Pure SVOD, with no ads at all, remains common in premium tiers.
Think of it like this
SVOD is like a members-only library: you pay a fee and borrow freely, although many libraries now offer a cheaper membership that comes with posters on the walls.
An example
A viewer in Canada switches from a streaming service's ad-free tier to its cheaper ad tier, which shows about four minutes of ads per hour, sold to brands through direct and programmatic guaranteed deals.
Related terms
AVOD
AVOD (advertising-based video on demand) is streaming video that viewers watch on demand for free or at reduced cost, funded by showing ads before or during the content.
OTT (over-the-top)
OTT (over-the-top) means video and audio content delivered over the internet directly to viewers, bypassing cable, satellite or broadcast distribution, and watchable on any device.
CTV (connected TV)
CTV (connected TV) is any television connected to the internet, such as a smart TV, streaming stick, games console or set-top box, and the advertising shown in streaming apps on it.
FAST (free ad-supported streaming TV)
FAST (free ad-supported streaming TV) channels are free, linear-style streaming channels with scheduled programming and ad breaks, delivered over the internet to smart TVs and apps.
Programmatic guaranteed (PG)
Programmatic guaranteed (PG) is a deal in which a buyer commits in advance to buy a fixed volume of impressions at a fixed price from a publisher, delivered through programmatic pipes.
Sources: IAB Tech Lab CTV standards